"They weren't afraid to show their affection in front of people," says an observer of the couple at the Feb. 19 Jim Beam Make History reception at Bill's Food & Drink in New York. "They weren't hiding. She was extremely happy. They were both glowing."

Now it's clear the newly expectant parents have had reason to glow as they get ready for both a wedding and a baby.

After a visit to a medical office building on March 7, the couple were spotted laughing and talking over lunch at BLD Restaurant on Beverly Boulevard in L.A.

"They were really happy," says an observer. "They were eating off each other's plates and laughing. They looked very much in love."

Their relationship has been a family affair, with the couple often visiting both sides of their extended clans and going to two family weddings in the last four months. At Christmas, Kutcher asked Kunis's dad, Mark for permission to marry his daughter as they get ready to start their own family.

The new mom-and-dad-to-be will also soon share some screen time as a couple again post That '70s Show – Kunis is set to appear as Kutcher's love interest in an upcoming episode of Two and a Half Men.